X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2019 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
VEDANTA LTD 2017-18 Annual Report Analysis

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

VEDANTA LTD 2017-18 Annual Report Analysis
Tue, 14 Aug

VEDANTA LTD has announced its results for the year ended March 2018. Let us have a look at the detailed performance review of the company during FY17-18.

VEDANTA LTD Income Statement Analysis

  • Operating income during the year rose 27.2% on a year-on-year (YoY) basis.
  • The company's operating profit increased by 18.0% YoY during the fiscal. Operating profit margins witnessed a fall and stood at 27.4% in FY18 as against 29.5% in FY17.
  • Depreciation charges and finance costs decreased by 0.1% YoY and 1.2% YoY, respectively.
  • Other income declined by 22.0% YoY.
  • Net profit for the year grew by 21.0% YoY.
  • Net profit margins during the year declined from 14.7% in FY17 to 14.3% in FY18.

VEDANTA LTD Income Statement 2017-18

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Net Sales Rs m 722,250 918,660 27.2%
Other income Rs m 45,806 35,740 -22.0%
Total Revenues Rs m 768,056 954,400 24.3%
Gross profit Rs m 213,324 251,640 18.0%
Depreciation Rs m 62,915 62,830 -0.1%
Interest Rs m 58,550 57,830 -1.2%
Profit before tax Rs m 137,664 166,720 21.1%
Tax Rs m 23,330 58,770 151.9%
Profit after tax Rs m 113,190 136,920 21.0%
Gross profit margin % 29.5 27.4
Effective tax rate % 16.9 35.3
Net profit margin % 14.7 14.3
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



VEDANTA LTD Balance Sheet Analysis

  • The company's current liabilities during FY18 down at Rs 672 billion as compared to Rs 827 billion in FY17, thereby witnessing an decrease of -18.7%.
  • Long-term debt down at Rs 268 billion as compared to Rs 303 billion during FY17, a fall of 11.5%.
  • Current assets fell 28% and stood at Rs 551 billion, while fixed assets rose 8% and stood at Rs 1,123 billion in FY18.
  • Overall, the total assets and liabilities for FY18 stood at Rs 1,848 billion as against Rs 1,990 billion during FY17, thereby witnessing a fall of 7%.

VEDANTA LTD Balance Sheet as on March 2018

No. of Mths Year Ending 12 Mar-17* 12 Mar-18* % Change
Networth Rs m 605,001 635,078 5.0
 
Current Liabilities Rs m 826,753 672,470 -18.7
Long-term Debt Rs m 302,551 267,890 -11.5
Total Liabilities Rs m 1,990,296 1,847,980 -7.2
 
Current assets Rs m 767,961 551,140 -28.2
Fixed Assets Rs m 1,043,116 1,123,340 7.7
Total Assets Rs m 1,990,296 1,847,980 -7.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



VEDANTA LTD Cash Flow Statement Analysis

  • VEDANTA LTD's cash flow from operating activities (CFO) during FY18 stood at Rs 180 billion on a YoY basis.
  • Cash flow from investing activities (CFI) during FY18 stood at Rs 154 billion, an improvement of 467.9% on a YoY basis.
  • Cash flow from financial activities (CFF) during FY18 stood at Rs -399 billion on a YoY basis.
  • Overall, net cash flows for the company during FY18 stood at Rs -64 billion from the Rs 83 billion net cash flows seen during FY17.

VEDANTA LTD Cash Flow Statement 2017-18

Particulars No. of months 12 12 % Change
Year Ending Mar-17 Mar-18
Cash Flow from Operating Activities Rs m 180,830 180,370 -0.3%
Cash Flow from Investing Activities Rs m 27,110 153,960 467.9%
Cash Flow from Financing Activities Rs m -124,250 -399,260 -
Net Cash Flow Rs m 83,391 -64,090 -
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Current Valuations for VEDANTA LTD

  • The trailing twelve-month earnings per share (EPS) of the company stands at Rs 46.2, an improvement from the EPS of Rs 38.2 recorded last year.
  • The price to earnings (P/E) ratio, at the current price of Rs 215.2, stands at 4.6 times its trailing twelve months earnings.
  • The price to book value (P/BV) ratio at current price levels stands at 1.3 times, while the price to sales ratio stands at 0.9 times.
  • The company's price to cash flow (P/CF) ratio stood at 3.2 times its end-of-year operating cash flow earnings.

Per Share Data/Valuations

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Sales per share (Unadj.) Rs 243.6 309.8
TTM Earnings per share Rs 38.2 46.2
Diluted earnings per share Rs 38.2 46.2
Price to Cash Flow x 3.6 3.2
TTM P/E ratio x 4.6 4.6
Price / Book Value ratio x 0.9 1.3
Market Cap Rs m 637,920 637,853
Dividends per share (Unadj.) Rs 19.5 21.2
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



Ratio Analysis for VEDANTA LTD

  • Solvency Ratios
  • Current Ratio: The company's current ratio improved and stood at 0.8x during FY18, from 0.9x during FY17. The current ratio measures the company's ability to pay short-term and long-term obligations.

    Interest Coverage Ratio: The company's interest coverage ratio deteriorated and stood at 3.9x during FY18, from 3.4x during FY17. The interest coverage ratio of a company states how easily a company can pay its interest expense on outstanding debt. A higher ratio is preferable.

  • Profitability Ratios
  • Return on Equity (ROE): The ROE for the company improved and stood at 21.6% during FY18, from 18.7% during FY18. The ROE measures the ability of a firm to generate profits from its shareholders capital in the company.

    Return on Capital Employed (ROCE): The ROCE for the company improved and stood at 28.1% during FY18, from 21.5% during FY17. The ROCE measures the ability of a firm to generate profits from its total capital (shareholder capital plus debt capital) employed in the company.

    Return on Assets (ROA): The ROA of the company improved and stood at 10.5% during FY18, from 8.6% during FY17. The ROA measures how efficiently the company uses its assets to generate earnings.

Key Ratio Analysis

No. of Mths Year Ending 12 Mar-17* 12 Mar-18*
Current ratio x 0.9 0.8
Debtors’ Days Days 11 16
Interest coverage x 3.4 3.9
Debt to equity ratio x 0.5 0.4
Return on assets % 8.6 10.5
Return on equity % 18.7 21.6
Return on capital employed % 21.5 28.1
* Results Consolidated
Interim results exclude extraordinary / exceptional items
Source: Company Reports, Regulatory Filings, Equitymaster



To see how VEDANTA LTD has performed over the last 5 years, please visit here.

VEDANTA LTD Share Price Performance

Over the last one year, VEDANTA LTD share price has moved up from Rs 289.2 to Rs 215.2, registering a loss of Rs 74.1 or around 25.6%.

Overall, the S&P BSE SENSEX is up 20.4% over the year.

(To know more, check out historical annual results for VEDANTA LTD and quarterly results for VEDANTA LTD)

Equitymaster requests your view! Post a comment on "VEDANTA LTD 2017-18 Annual Report Analysis". Click here!

  

Related Views on News

VEDANTA LTD Announces Quarterly Results (3QFY19); Net Profit Down 21.2% (Quarterly Result Update)

Feb 4, 2019 | Updated on Feb 4, 2019

For the quarter ended December 2018, VEDANTA LTD has posted a net profit of Rs 23 bn (down 21.2% YoY). Sales on the other hand came in at Rs 237 bn (down 2.8% YoY). Read on for a complete analysis of VEDANTA LTD's quarterly results.

VEDANTA LTD Announces Quarterly Results (2QFY19); Net Profit Down 36.4% (Quarterly Result Update)

Nov 6, 2018 | Updated on Nov 6, 2018

For the quarter ended September 2018, VEDANTA LTD has posted a net profit of Rs 19 bn (down 36.4% YoY). Sales on the other hand came in at Rs 227 bn (up 5.2% YoY). Read on for a complete analysis of VEDANTA LTD's quarterly results.

More Views on News

Most Popular

The RCom Bankruptcy: 5 Lessons for Smallcap Investors(Profit Hunter)

Feb 7, 2019

Managements of companies can create or ruin their fortunes. Why is management quality such an important factor in valuing businesses? Read on to find out...

The One Real Estate Stock to Buy Now(The 5 Minute Wrapup)

Feb 13, 2019

The real estate sector is ready to make a comeback. This is the stock to consider buying.

How We Pick the Most Profitable Stocks from the Portfolios of Super Investors(The 5 Minute Wrapup)

Feb 8, 2019

This is the trick to following super investors and not losing money.

Don't Be Afraid of the Market; Buy Stocks Like This One(The 5 Minute Wrapup)

Feb 14, 2019

During this tough period in the market, a contrarian approach holds huge potential upside for this Smart Money Secrets stock.

Small Caps Under Seige: Could This Be A Once-in-a-Decade Wealth Creating Opportunity?(Profit Hunter)

Feb 14, 2019

Don't let the dark clouds hovering over small caps scare you into hiding; it will rain gold as sentiments recover. Indeed, there is a blood bath. And if you are a first time investor, the correction is deep enough to scare you out of markets.

More

Get the Indian Stock Market's
Most Profitable Ideas

How To Beat Sensex Guide 2019
Get our special report, How to Beat Sensex Nearly 3X Now!
We will never sell or rent your email id.
Please read our Terms

TRACK VEDANTA LTD

  • Track your investment in VEDANTA LTD with Equitymaster's Portfolio Tracker. Set live price alerts, get research alerts and more. Get access now...
  • Add To MyStocks

VEDANTA LTD - GUJ.MINERAL DEV. COMPARISON

COMPARE VEDANTA LTD WITH

MARKET STATS